Assume Congress enacts a 10 billion increase in spending and a 10 ...

[V@ndy87]

Assume Congress enacts a 10 billion increase in spending and a 10 billion tax increase to finance the additional government spending. The result of this balanced-budget approach is a:
 a. 20 billion increase in aggregate demand.
  b. 10 billion increase in aggregate demand.
  c. 100 billion increase in aggregate demand.
  d. 10 billion decrease in aggregate demand.

Question 2

The transmission mechanism is the effect of changes in monetary policy on prices, real GDP, and employment.
 a. True
  b. False
  Indicate whether the statement is true or false

[bitingbit]

Answer to Question 1

b

Answer to Question 2

True

[V@ndy87]

Thanks for the timely response, appreciate it

[vickybb89]

Gracias!